On December 5, 2024, the Canadian Securities Administrators (the
“CSA“) published CSA Staff Notice and Consultation
11-348 regarding the Applicability of Canadian Securities Laws
and the use of Artificial Intelligence Systems in Capital
Markets (the “CSA Notice“) to
provide market participants with guidance on the use of artificial
intelligence (“AI“) systems in Canadian
capital markets.
The guidance from the CSA Notice is premised on the principle
that investors should have accurate, equal and timely access to
material information when making investment decisions. It
emphasizes the importance of transparency, accountability, and risk
mitigation when leveraging AI in capital markets. The CSA Notice
highlights the current state of AI and its application to
securities law requirements and includes guidance for the following
market participants:
- Non-Investment Fund Reporting Issuers;
- Registrants;
- Marketplaces…
